Canadian Pacific Railway Limited (NYSE:CP) (TSE:CP) hit back at Bill Ackman’s Pershing Square Capital today with a release listing some of the company’s correction to facts highlighted by Bill Ackman’s Pershing Square Capital about the business. The company says it believes replacing the CEO Fred Green with Ackman’s nominee Hunter Harrison would be disastrous for the company’s well being in what the board says is a critical phase in the company’s life.
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Pershing Square holds about 14% of Canadian Pacific and has been attempting to gain shareholder approval for a change at the company for some time now.
More specifically the release centres upon several statements made in the proxy circular sent around by Pershing Square about the company’s results and managements. The release takes it upon itself to correct what it sees as incorrect or misleading statements about the company’s performance. The full release is available at the SEC website here for those interested in specifics. In summary though the release is another furious strike at Ackman as the board attempts to hold onto its control of the company. Each side appears to be using its own facts and neither seems willing to give the other any leeway for any reason.
The history of the conflict isn’t too long but has been violent, at least verbally. Ackman has been engaged in a furious proxy war at Canadian Pacific throughout the early part of this year. Ackman has put up his alternatives for directors at the company, a move that will be denied or confirmed at the company’s annual shareholder meeting in May 17th.
The proxy war has resulted in bitter exchanges between the two entities before and today’s release is no different. Things are bound to get a lot more frenetic as the clock edges toward May and that shareholder’s meeting where the two will collide in what will probably be spectacular fashion.